Influence Of Business Associations Services On The Growth Of Micro And Small Enterprises: A Case Of Starehe Sub County, Nairobi County, Kenya
Abstract
According to the Sessional paper No. 2 of 2005 on growth and development of micro and small
enterprises in Kenya, only seventeen percent of small and medium firms grow out of micro
firms. This is a real cause of concern to policy practitioners and development agencies.
Enterprises are therefore advised to continuously improve their services in order to attract more
customers and experience growth in sales and income. The purpose of this study was to
investigate the influence of business association’s services on growth of micro and small
enterprises in Starehe Sub- County. The study was guided by these research objectives, to
examine the role of entrepreneurship training in business associations on growth of micro and
small enterprises in Starehe Sub- County, to determine how technology transfers services in
business associations affect growth of micro and small enterprises in Starehe Sub- County. Other
objectives were to explore how networking services in a business association affect growth of
micro and small enterprises in Starehe Sub- County and to establish the impact of financial
services offered by business associations on growth of micro and small enterprises in Starehe
Sub- County. Descriptive survey design was used on the registered business associations by
MSEA in Starehe Sub- County selected through purposive and random sampling techniques.
Questionnaires were administered to selected members of each of the registered associations.
Data was collected and analyzed with the aid of SPSS Version 20 computer program and
Microsoft Excel 2007.Descriptive statistics and have been computed to show the relationship
between variables. Finally the findings have been presented in the form of tables. The findings
have revealed that training services by business associations had positive influence on the growth
of micro and small enterprises. The study revealed that technology transfer services offered by
business associations have very little influence on the growth of micro and small enterprises.
Similarly the study established that networking services in business association had a positive
influence on growth of micro and small enterprises. Finally the study found out that financial
services offered by business associations have little influence on growth of micro and small
enterprise in Starehe Sub-County. It is hoped that the findings will be used to improve business
development programs for the micro and small enterprise sector. The study recommends that the
government through the Micro and Small Enterprise Authority (MSEA) should partner with
business associations to sponsor more training events for the micro and small enterprise sector. It
is further recommended that for effective transfer of technology to the micro and small
enterprises, MSEA should design more practical oriented training programmes for micro and
small enterprises through collaboration with other agencies especially the National Industrial
Training Authority. Another recommendation is that large enterprises should be offered tax
incentives by the government to encourage them to sign subcontracting agreements with micro
and small enterprises. Finally it is recommended that business associations should be encouraged
to enter into lending agreements with other financial institutions to increase loans uptake by their
members.
Publisher
University Of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- Faculty of Education (FEd) [5980]
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